Exercise 9-5 Departmental expense allocations LO P2 Woh Che Co has four deparmen
ID: 2511664 • Letter: E
Question
Exercise 9-5 Departmental expense allocations LO P2 Woh Che Co has four deparments materials.personnel, monufacturing and packagint ihaedeperimis incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow Allocation Base Supervision Utilities Insurance Total S 83,880 Number of employees 63,880 Square feet occupied 29,000 Value of assets in use 5175,800e Departmentat data for the compeny's recent reporting period Follow : Department EmployeesSquare Feetsset values 26 37,500 $10,950 Materiels Personnel Manufacturing Packaging 52 63,753 TEi020 130 1.Use this information to elocate eExplanation / Answer
Departments
Total cost
Materials
Personnel
Manufacturing
Packaging
Supervision (26:13:52:39)
83800
16760
8380
33520
25140
utilities (37500: 6250: 68750: 12500)
63000
18900
3150
34650
6300
Insurance (10950: 3650: 38690: 19710)
29000
4350
1450
15370
7830
Workings:
Departments
Numerator
Denominator
Supervision
Materials
26
130
Personnel
13
130
Manufacturing
52
130
Packaging
39
130
Departments
Numerator
Denominator
Utilities
Materials
37500
125000
Personnel
6250
125000
Manufacturing
68750
125000
Packaging
12500
125000
Departments
Numerator
Denominator
Insurance
Materials
10950
73000
Personnel
3650
73000
Manufacturing
38690
73000
Packaging
19710
73000
Departments
Total cost
Materials
Personnel
Manufacturing
Packaging
Supervision (26:13:52:39)
83800
16760
8380
33520
25140
utilities (37500: 6250: 68750: 12500)
63000
18900
3150
34650
6300
Insurance (10950: 3650: 38690: 19710)
29000
4350
1450
15370
7830
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